5 Questions
What does the 'bottom of the pyramid' approach emphasize?
The resilience and creativity of the poor
What is one way in which the romanticized view of the poor harms them?
Too little emphasis on legal and social protection for the poor
What does the text suggest about the 'bottom of the pyramid' approach and employment opportunities for the poor?
It underemphasizes fostering modern enterprises for the poor
What is the primary concern regarding the 'bottom of the pyramid' approach and poverty reduction?
Gross underemphasis on the role of the state in poverty reduction
What is the author's affiliation mentioned in the text?
Ross School of Business, University of Michigan
Study Notes
The Bottom of the Pyramid Strategy for Reducing Poverty: A Failed Promise
- Movement emphasizing free markets to reduce poverty
- Bottom of the pyramid approach romanticizes the poor as resilient and creative entrepreneurs
- Harmful consequences of romanticized view of the poor
- Insufficient emphasis on legal, regulatory, and social mechanisms to protect vulnerable consumers
- Overemphasis on microcredit and underemphasis on fostering modern enterprises for employment
- Gross underemphasis on the role and responsibility of the state in poverty reduction
- Author: Aneel Karnani, Professor at the Ross School of Business, University of Michigan
- JEL categories: O10 General (Economic Development), I30 General (Welfare and Poverty)
- Keywords: Poverty reduction, bottom of pyramid, consumption choices, micro-entrepreneurs
- The poor as value-conscious consumers
- Empirical evidence on poverty and alcohol consumption
- The poor as entrepreneurs and an attractive market
Test your knowledge of the bottom of the pyramid strategy and its impact on poverty reduction with this quiz. Explore the key concepts and arguments presented in Aneel Karnani's article from August 2009.
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